In Crises Managed: Monetary and Fiscal Frameworks for the Future Michael Bordo and Harold James explain that the problems which led to the crisis continue or have returned. Global imbalances, manipulation of interest rates, loose monetary policy, potential banking failures and public finance insolvencies threaten stability and recovery. Central banks and the financial sector as a whole are under increasing political pressure, and, because monetary and fiscal policy have become politicized, our systems are now less likely to overcome the problems than before. Moreover, high levels of public spending and activity have become the norm, but the evidence is that they cannot be financed in the long term.

The authors propose a series of robust measures for a reliable monetary order, long-term rules for the size of government - and its balance sheets - and an independent fiscal council to counter the ever greater demands of the interest groups to which governments today fall victim. The UK now has the opportunity to lead change, as it did under Margaret Thatcher in the ‘80s, and set a model for the industrial world.

Friday 31st July: As Andy Burnham sets out his stall for Labour's leadership, he must learn to live within the reality of politics if he wants his party in power, says Politeia's Director, Sheila Lawlor.

To Jeremy Corbyn’s unexpected surge in Labour’s leadership election campaign, can be added a further, less surprising development from another contender. Andy Burnham, has now emerged as a bigger taxer, bigger public spender, than when a minister under Gordon Brown. He boasted in Leeds this week and again on the BBC that he would go further than he had been allowed under Mr Brown’s regime. He wants to impose extra taxes to pay for social care for everyone in old age.

Mr Burnham seems to be out of touch with what voters want. Not only did they return the Conservatives to power in May with a mandate for further benefit and deficit cuts and to shrink, not increase, state dependency; but in a poll for the Independent a majority of those questioned believe Labour to be less electable now than in May. The message was even starker from the analysis of defeated candidates in Labour target seats (lost by the party in 2010) published by the Fabian Society. Their party was not trusted with the economy by the voters, many of whom had switched in 2010 to the Tories.